Question

The auditor is responsible for evaluating the likelihood of a client continuing as a going concern for a reasonable period of time. What is considered to be a reasonable time period?

a. One year from the audit report date.

b. One year from the last day of field work.

c. One year from the balance sheet date.

d. Two years from the balance sheet date.

Answer 1

The auditor evaluates the going concern of a client for one year from the balance sheet date.

Step-by-step explanation:

The auditor is responsible for evaluating the likelihood of a client continuing as a going concern for a reasonable period of time. The reasonable time period is generally considered to be one year from the balance sheet date, which is option c. This assessment is vital as it impacts the financial statements and their presentation.